So what: Both Credit Suisse and Goldman Sachs told their clients today that they thought more stringent prepayment reviews in several states wouldn't have the major impact the market was pricing in. Hospitals have become more stringent about patients meeting coverage criteria, and that will only continue as Medicare and Medicaid look at approvals of cardiac care, spinal fusion, and joint replacements.

Now what: Analysts have their eyes on volumes and denial rates in the short term, which will likely not be greatly affected. But long term, I still think everyone in the health-care industry will be squeezed by a need for Medicare to cut costs. I'm not buying in today because I just don't see this as a rally built on stronger fundamentals for health-care providers.

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